Industry Visit Report - Blue Scope Steel

Industry Visit Report

Blue Scope Steel

Executive summary

This report is mainly focus on describing the observation and perception that related to business concept, when visiting the Blue Scope Steel corporate. In this report, four aspects of business concept are mentioned which consist of layout strategy, supply chain management, environment friendly as well as human oriented. Finally, recommended the suggestion that set up the intelligent power-saving system to reduce operation cost.

1. Introduction

The purpose of this visit is to experience the practical aspect that learned the text book, which make a contribution to further understand business practice in the reality.

BlueScope Steel is a flat product steel producer with operations in Australia, New Zealand, Asia, the Pacific and North America. It was spun off from BHP Billiton in 2002 as BHP Steel and renamed BlueScope Steel on 17 November 2003. The BlueScope Steel not only lead world with providing steel building solutions for building materials area. Which is proud to be sponsor of Australia pavilion in the World Expo 2010 Shanghai. But also is a leading global provider of high quality metallic coated and color coated steel products supplier. In 11th March, we are pleased to visit the BlueScope Steel group, through which make me further understand about the layout strategy, sustainable development project and human orientated as well as advanced logistical ideas.

2. Observation in the plant

Layout strategy

Manufacturing steels are high-volume, low-variety products. Therefore, in order to develop a cost-effective layout that can meet the Blue Scope Steel "s competitive needs. The company designs the product-oriented layout. Which seeks the best personnel and machine utilizations in repetitive or continuous production. (Heizer/Render,2008) The product-oriented layout dedicates equipment and workers to specific products on a liner route. (Verma/Boyer,2008) Which contribute to reduce variable cost per unit and low material handing costs as well as work-in-process inventories. On the other hand, the product oriented layout is easier training and supervision compared with others.

Supply chains management

In the aspect of purchasing/ sourcing, the BlueScope Steel company adopt the Purchasing portfolio management approach. According the purchasing cost and relative risk, divided the items into 4 items---leverage, strategic, non-critical and bottleneck product. Different product use different purchasing strategy. Purchasing portfolio management aims to guide manager so that they can recognize the weakness of their organization and formulate strategies for guarding against supplies disruption. (Kenneth Lysons and Brian Farrington,2006)

Effective logistic is another highlight. The BlueScope Steel setup own railway to transport coals and other products. On the other hand, take the advantage of closing harbor, the sources